You can be self employed as an individual or continue to provide services through a personal limited company. Sole traders who own a company in its entirety, which means that once tax is calculated, all the profits remain with the company unless money is withdrawn as salary or dividends. Please seek professional advice if you fall within IR35 regulations.
In order to become a sole trader as an individual, you must get registered with HMRC and submit personal tax returns on an annual basis. As highly experienced accountants, we can help you with the sole trader registration process and with calculating your tax returns each year, ensuring that you stay on top of your company finances.
WHAT TO LOOK FOR : SELF ASSESSMENT TAX RETURNS
The main thing to be aware of when completing your own self-assessment tax return is to ensure that you don’t miss the deadline as otherwise you will receive a financial penalty from HMRC. Anyone who has been a company director or who has been self employed at any time between the 6th of April and the 5th April of the next year will have to complete a self-assessment form either on paper or online. Anyone who has not registered must do it well in advance of the deadline due to the time taken for the activation PIN to be sent through the post. Your UTR (Unique Tax Reference Number) is vital for completion of your self-assessment.
If you plan to become a sole trader or start a business or if you are employed having income more than £100k or if you believe that you owe HMRC income tax on your private pension, you must register with HMRC . If you are working as contractor or providing services under limited company you will be register for self assessment as director of the company.
Completing your self-assessment tax return individuals may get into a long and stressful process and can take a great deal of time out of your busy schedule, especially if you are self-employed. Using the services of a skilled accountancy firm like The Accountancy Solutions, you can be confident that your finances are in safe hands and that your tax return will be completed accurately and in a timely manner so that you won’t be penalised for late submission.
Areas we can assist in include, but aren’t limited to: